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The information in this article was last updated on 31st October 2022.
Amid the surging fuel prices, the Central Government had reduced the excise duty on petrol by ₹ 5 per litre.
Following the line, the Chhattisgarh Government also offered relief on VAT on petrol by 1% per litre.
Crucial aspects of petrol tax in Chhattisgarh are highlighted in the following segment, so keep scrolling to know more about it.
On 21st May 2022, the Central Government reduced the excise duty on petrol to ₹ 19.90 per litre. The Chhattisgarh Government charged a Value Added Tax of 27.02% on petrol as of 31st October, 2022.
Here is this table mentioned below that summarises the essential components that sum up the price of petrol in Chhattisgarh:
|
Elements |
Effective as of 31st October, 2022. (in ₹ per litre) |
|
Price charged to dealers |
₹ 57.35 per litre |
|
Excise duty (levied by the Central Government) |
₹ 19.90 per litre |
|
Average dealer commission |
₹ 4 per litre |
|
VAT (levied by the State Government) |
₹ 21.20 per litre {27.02% of (fuel price charged to dealers + excise duty + avg. dealer commission)} (an additional VAT of ₹ 2 per litre is applicable) |
|
Retail selling price of petrol at Chhattisgarh |
₹ 102.45 per litre |
Central and State Governments impose excise duty and VAT on petrol respectively. These taxes comprise petrol price in Chhattisgarh along with other factors like dealer’s commission, price of crude oil, etc.
Changes in crude oil’s price at the international market directly influence its prices in the domestic market. Factors such as global demand for crude oil, production rate, and political relations in countries where crude oil is being imported affect crude oil’s price and, consequently, petrol prices.
Oil Marketing Companies such as HPCL and IOCL levy a charge to dealers to distribute crude oil depending on factors such as refining expenses, freight charges, etc. This price levied by them is an important factor that affects petrol prices.
The Central Government imposes excise duty, and the State Government levies VAT on petrol. Both these taxes influence petrol prices in Chhattisgarh and across India.
OMCs provide a commission to petrol pump owners, which affects the petrol price in Chhattisgarh and the entire country.
The crude oil is imported from the international market, and the transaction is completed in dollars. Hence, any change in the exchange rate of rupees and dollars affects petrol prices in the domestic market.
If the supply of petrol falls short of the increasing demand for petrol in the market, then petrol prices will increase as per the law of economics.
Yes, all places in Chhattisgarh levies a similar rate of VAT on petrol. However, petrol prices may differ across cities in Chhattisgarh due to differences in dealer’s commission charged in each city.
Thus, a reduction in petrol tax in Chhattisgarh along with reduced excise duty will lower the petrol price in the state by ₹ 70 paise. This will relieve residents of Chhattisgarh from a high rate of tax incidence on petrol.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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